Skip to content

Legislative Changes Affecting Salary Administration, 86th Legislature

FPP F.021

ERS, TRS and ORP Retirement Rates for Fiscal 2020 and Fiscal 2021

ERS Retirement Rates for Fiscal 2020 and Fiscal 2021

The General Appropriations Act (GAA) provides that the rates for both the employee contribution and the state contribution for members of the Employees Retirement System of Texas (ERS), with the exception of participants in Judicial Retirement Plan II, will not change for the September 2019 pay period. House Bill 2384 raises the employee contribution rate for members of Judicial Retirement Plan II.

The table below outlines the rates effective Sept. 1, 2019.

Retirement Plan Employee Contribution Rate State Contribution Rate¹
Fiscal 2020 Fiscal 2021 Fiscal 2020 Fiscal 2021
ERS* 9.5% 9.5% 9.5% 9.5%
Judicial Plan 1 9.5% 9.5% 0.0% 0.0%
Judicial Plan 2 9.5% 9.5% 15.663% 15.663%

The Law Enforcement Custodial Officer Supplemental (LECOS) rates will remain the same.

The payroll retirement contribution will continue to be paid by agencies at the rate of 0.5 percent of base salary for all employees who are members of the retirement system. It will be paid from the agencies’ budgets.

TRS Retirement Rates for Fiscal 2020 and Fiscal 2021

For employees covered by Teacher Retirement System of Texas (TRS), the state contribution rate will increase to 7.5 percent for both fiscal 2020 and fiscal 2021.

The employee contribution rate will remain at 7.7 percent for fiscal 2020 and 2021.

Optional Retirement Program (ORP) Rates for Fiscal 2020 and Fiscal 2021

For employees participating in the Optional Retirement Program (ORP), the state contribution rate will remain at 6.6 percent for both fiscal 2020 and fiscal 2021. Employers are authorized to use local funds or other sources of funds to supplement the General Revenue Fund appropriation at a rate up to 1.9 percent. The employee contribution rate will remain at 6.65 percent for both fiscal 2020 and fiscal 2021.